Selling mulled wine: do you need a license?

Mulled wine (even if made exclusively from table wine) does not fall under the definition of table wine, but is a cocktail. Accordingly, its sale must be subject to the availability of a license for the retail sale of alcoholic beverages.

The basic principles of the state policy on regulation of production, export, import, wholesale and retail trade, alcoholic beverages, tobacco products, liquids used in electronic cigarettes, fuel and storage of fuel are defined by the Law of Ukraine dated 19.12.1995 No. 481/95-ВР "On State Regulation of Production and Circulation of Ethyl Alcohol, Cognac and Fruit Alcohol, Alcoholic Beverages, Tobacco Products, Liquids Used in Electronic Cigarettes and Fuel" (hereinafter - Law No. 481).

According to part 20 of Article 15 of Law No. 481, retail trade in alcoholic beverages (except for table wines) may be carried out by business entities of all forms of ownership, including their producers, if they have licenses for the right to retail trade in alcoholic beverages.

At the same time, according to subpara. 3 subpara. 291.5.1 of the TCU, single tax payers are prohibited from selling excisable goods (except for retail sales of fuels and lubricants in containers of up to 20 liters and activities of individuals related to retail sales of beer, cider, perry (without alcohol) and table wines). In other words, in order to carry out such activities, the taxpayer must be under the general taxation system or switch to the general taxation system.

Although table wine is used to make mulled wine, which can be sold without a license, a license is required to sell mulled wine. Since according to DSTU 4806-2007 "Wines. General Technical Conditions", the use of water sugar, flavorings and colorants in the production of grape wines is prohibited.

In addition, clause 23 of the Rules No. 854 (Rules for Retail Trade in Alcoholic Beverages) stipulates that when selling alcoholic beverages on tap in restaurant establishments, it is prohibited to mix drinks of different types and brands, except for the production of cocktails.

Thus, mulled wine (even if made exclusively from table wine) does not fall under the definition of table wine, but is a cocktail.

Since cocktails are not table wines, a business entity that plans to produce and sell them cannot be subject to the single tax and must carry out such activities subject to a license for the retail sale of alcoholic beverages.